In this article, we will be looking at the 25 most in-demand cars heading into 2024. We will be covering market trends, recent news, key players in the industry, and an overall market analysis of the automotive industry. If you want to skip our detailed analysis, you can go directly to the 5 Most In Demand Cars Heading into 2024.
An Analysis of the Global Automotive Industry
According to a report published by Fortune Business Insights, the global automotive industry was valued at $2.74 trillion in 2021 and is projected to grow at a compound annual growth rate (CAGR) of 3.01% up till 2031, reaching $3.57 trillion by the end of the forecasted period.
The United States of America is one of the top players in the automotive industry and contributes approximately 3% to the overall Gross Domestic Product (GDP) of the country. According to a report published by Mordor Intelligence, the North American automobile industry was sized at $940 billion in 2023 and is expected to reach $1.22 trillion by 2028, registering a CAGR of 5.43% over the projected period. Rising demand for high-end transport vehicles, emergence and rapid adoption of electric vehicles, increased investments in infrastructure, and rising per capita income of the population are the key factors driving growth in the automotive industry.
The automotive industry is one of the biggest industries in the world. According to a report by IBISWorld, global car and automobile sales generated a staggering $4.3 trillion in annual revenue in 2023 alone. The industry comprises various smaller markets including automotive manufacturing, auto parts, and dealerships. Light commercial vehicles, also known as passenger vehicles, are one of the biggest segments of the automotive industry. Other segments include sedans, hatchbacks, SUVs, and luxury trucks.
According to the report, light commercial vehicles held the largest market share in 2022. The growing share of passenger vehicles in the industry is mainly due to the inclination of manufacturers towards incorporating high-end technologies such as advanced navigation systems and autonomous driving technologies that uplift the user experience. General Motors Company (NYSE:GM), Paccar Inc (NASDAQ:PCAR), Tesla Inc (NASDAQ:TSLA), and Ford Motor Company (NYSE:F) have taken the lead as they stay committed to introducing next-generation vehicles that feature cutting-edge technologies and premium quality interiors.
The electric vehicle industry is poised for growth as well, with companies including Tesla Inc. (NASDAQ:TSLA), Nio Inc (NYSE:NIO), and Rivian Automotive Inc (NASDAQ:RIVN) leading the market. On December 1, Reuters reported that Tesla Inc (NASDAQ:TSLA) launched the long-awaited Cybertruck starting at $60,990, which is 50% more expensive than the anticipated price following CEO Elon Musk’s statement in 2019. However, Elon Musk is confident that the truck will attract affluent buyers and said that the “Cybertruck has more utility than a truck and is faster than a sports car”.
Wall Street analysts are positive on Tesla Inc. (NASDAQ:TSLA). On December 27, Morgan Stanley analyst Adam Jonas reiterated his price target of $380 on the stock and kept an overweight opinion. As of December 27, the stock has surged over 137% on a year-to-date basis.
Furthermore, with the Paris Agreement in place, other key players in the industry have started to diversify their production with electric vehicles. For instance, on November 30, Reuters reported that the Chief Financial Officer of General Motors Company (NYSE:GM) in a recent conference said that the automakers will witness improvements in electric vehicle margins as it is expected to reach a mid-single-digit profit before interest and tax margin targets by 2025.
On October 24, General Motors Company (NYSE:GM) reported solid earnings for the fiscal third quarter of 2023. The company reported earnings per share of $2.28 and outperformed EPS estimates by $0.44. The company’s revenue for the quarter amounted to $44.13 billion, up 5.35% year over year and ahead of market consensus by $879.02 million.
Restraining Factors and The Way Forward
Moving forward, the automotive industry may face challenges such as the high cost of manufacturing and data management. The integration of cutting-edge technologies such as advanced driver assistance systems and other software-backed technologies can increase the overall cost of production.
However, the Internal Combustion Engine (ICE) segment of the industry still holds the largest market share as per the aforementioned reports. The US has a vast network of diesel and gasoline stations that makes it convenient for customers to fuel vehicles and the lower upfront cost is expected to propel further growth in the segment. Furthermore, the BEV sector will help ease the restraining factors as supportive government policies for minimizing pollution levels fuel the growth of the electric vehicle market. On December 5, Bloomberg reported that Ford Motor Company (NYSE:F) will take a direct stake in nickel plant construction for batteries in Indonesia along with Indonesian and Chinese investors. It will not only help Ford Motor Company (NYSE:F) secure material for electric vehicles but will also strengthen its oversight in mining and refining of the material.
Ford Motor Company (NYSE:F) was a part of 43 investors’ portfolios at the close of the third quarter of 2023. The total stakes of these hedge funds amounted to $1.33 billion, up from $895.5 million in the preceding quarter when 40 hedge funds held positions in the group.
For the competitive automotive industry, investors should keep an eye on General Motors Company (NYSE:GM), Ford Motor Company (NYSE:F), and Tesla Inc (NASDAQ:TSLA). Let’s now take a look at the 25 most in-demand cars heading into 2024.
25 Most In Demand Cars Heading into 2024
Our Methodology
To collect data for the most in-demand cars heading into 2024 we consulted 4 sources including Kelly Blue Book, Car and Driver, U.S. News & World Report, and Edmunds. A consensus approach was employed to assimilate our list in which we tracked the number of times a car was mentioned in our sources and its rank in each source. We shortlisted 30 cars that appeared in at least 2 of the 4 sources. Then we computed the average rank of each car by summing their individual ranks and dividing it by the number of times it appeared in a source. The list is ranked in descending order of the computed average rankings.
By the way, Insider Monkey is an investing website that tracks the movements of corporate insiders and hedge funds. By using a consensus approach, we identify the best stock picks of more than 900 hedge funds investing in US stocks. The top 10 consensus stock picks of hedge funds outperformed the S&P 500 Index by more than 140 percentage points over the last 10 years (see the details here). Whether you are a beginner investor or a professional one looking for the best stocks to buy, you can benefit from the wisdom of hedge funds and corporate insiders.
25 Most In Demand Cars Heading into 2024
25. Chrysler Pacifica
Number of Mentions: 3
Average Rank: 16.3
Chrysler’s Pacifica is a multipurpose minivan and comes with a hidden cargo compartment. After the discontinuation of the Sedan 300 series, Pacifica remains the only model by the American brand. It comes with an all-wheel drive and a plug-in hybrid variant which can run around 32 miles on battery. The fascinating hidden cargo compartment (Stow’n Go feature) is available in the non-hybrid model that allows you to convert an 8-seater minivan to a cargo vehicle. While the design of Pacifica has started to become outdated, however, the timely upgrades by Chrysler still keep it competitive in our list of the most in-demand cars heading into 2024.
24. Chevy Malibu
Number of Mentions: 2
Average Rank: 16
Chevy Malibu is a 5-seater mid-size sedan that comes with a turbocharged gas 1.5-litre engine generating 163 horsepower engine under the hood. It not only offers a comfortable interior with spacious headroom in the front and an easy-to-use touchscreen panel but also has 4 trims including LS, RS, LT, and 2LT up for selection.
23. Jeep Wrangler
Number of Mentions: 4
Average Rank: 16
Jeep Wrangler has kept its position as the ultimate off-roader and therefore made its way into our list of the most in-demand cars heading into 2024. The idea of the Wrangler was conceived from the cavalry horse in World War 2 and it has come a long way since then. It holds a powerful V6 engine that generates a staggering 470 horsepower and 4-wheel drive that enhances the off-roading prowess. Noteworthy updates for the 2024 Jeep Wrangler include a factory-built 8000-pound Warn winch and a much more powerful Dana 44 rear axle enhancing the towing capacity of the vehicle.
22. Chevrolet Equinox
Number of Mentions: 3
Average Rank: 16
Equinox by Chevrolet is a spacious small SUV and a good fit for family drivers. It offers a roomy 5-seater cabin, balanced handling, good fuel economy, and a turbocharged 1.5-litre engine under the hood. With a handful of trims on offer that feature both Front Wheel Drive and All Wheel Drive, and a sleek design, Chevrolet Equinox competes well in the small SUV category.
21. Ford Escape
Number of Mentions: 3
Average Rank: 15
Ford Escape is the company’s smallest SUV as Ford Motor Company (NYSE:F) discontinued the EcoSports a few years ago. Measuring about 8 inches less than the Ford Edge, the Escape has gained popularity due to its all-round versatility. It features different powertrain options, including hybrid, plug-in hybrid, and gasoline. As part of the fourth Escape generation, it offers competition to rival small SUVs in terms of comfort, efficiency, and space, therefore making it rank on our list of most in-demand cars.
20. Hyundai Elantra
Number of Mentions: 2
Average Rank: 14
Hyundai Elantra is a stylish sedan in the small sedan category that has a roomy interior, and variety in terms of model features. With a powerful base 2.4 Liter (4 cylinder) engine, the 2024 Elantra features a new and stylish front and rear, steering and handling technology update, and additional tech including driver assist features. Its comfortable ride, fuel-efficient engine, and intuitive infotainment features make it a good fit for family drivers.
19. Subaru Outback
Number of Mentions: 4
Average Rank: 13
Standing in the line of SUVs, the Subaru Outback outperforms many of its competitors. Outback is not just an SUV but features a station wagon’s comfort, practicality, and ground clearance. Prominent features include an optional turbocharged engine that provides immense power, loading ease compared to its rival SUVs and average off-road capabilities. The 2024 model is expected to get updates such as LED fog lights, a redesigned front bumper, and more features in upper trims.
18. Mazda CX-5
Number of Mentions:
Average Rank: 12.8
Mazda CX 5 offers sharp handling, a sleek design, a high-quality interior, and a market-competitive price. However, it faces a few challenges. In 2023 Mazda Motor Corporation (OTC:MZDAY) launched a new model CX-50, which offers almost the same features, thus leaving consumers confused while choosing between two similar SUVs. Furthermore, it falls just a little short in passenger capacity, cargo space and fuel economy. Regardless of the challenges, plenty of standard features and a powerful 187-277 horsepower engine varying across different trims keep the CX-5 competent in its class and make it one of the most in-demand cars heading into 2024.
17. Subaru Crosstrek
Number of Mentions: 3
Average Rank: 12.7
Subaru Crosstrek by Subaru Corporation (OTC:FUJHY) has kicked off its third Crosstrek generation by redesigning the Crosstrek small crossover for 2024. The standard ongoing features including all-wheel drive, good fuel economy, off-road drive comfortability, and roomy interior remain intact. The 2024 model also includes a New Wilderness trim level, updated safety and infotainment technology, and redesigned body design.
16. Toyota Corolla
Number of Mentions: 4
Average Rank: 10.8
The Toyota Corolla is a favorable choice when it comes to the small sedan category. It ranks on our list of the most in-demand cars heading into 2024 due to its comfortable ride, user-friendly infotainment, salient safety features, and premium-quality interior. Under the hood, the Corolla offers a 2.0-litre four-cylinder engine across all trims that can produce 169 horsepower. There are no prominent changes for the 2024 Toyota Corolla other than the return of the Nightshade trim in the lineup.
15. Jeep Grand Cherokee
Number of Mentions: 4
Average Rank: 10
The Jeep Grand Cherokee is a good fit for drivers seeking a luxurious ride in difficult terrains. The Jeep Grand Cherokee is a 2-row midsize SUV that offers a lavish interior with top-class off-roading abilities. Grand Cherokee not only offers a powerful V-6, 3.6-liter engine that generates a staggering 293 horsepower but also has 9 trims featuring various specifications including four-wheel drive and rear-wheel drive up for selection. The Jeep Grand Cherokee is one of the most in-demand cars heading into 2024.
14. Hyundai Tucson
Number of Mentions: 4
Average Rank: 9.8
Hyundai Tucson is a small crossover SUV that offers a comfortable driving experience and versatile features making it a good fit for family drivers. It not only features ample cargo space and a 187 horsepower engine under the hood but also a sleek design that is often overlooked. The 2024 Hyundai Tucson is expected to come with a few updates including a turbocharged 2.6-liter engine for N-line trim and a minor change between the trims. It is one of the most in demand cars heading into 2024.
13. Honda Civic
Number of Mentions: 4
Average Rank: 9.5
The 11th Generation Honda Civic is Honda Motor Co Ltd’s (NYSE:HMC) best model yet. It is one of the most in demand cars heading into 2024. The unwearying appeal of the Honda Civic stems from its spacious interior, delightful performance, and comprehensive inclusion of the latest technology and driver assistance features that Honda Motor Company Ltd. (NYSE:HMC) has to offer. Setting itself apart from its closest rivals, the Civic outperforms its competitors in fuel economy by an impressive 3 to 4 miles per gallon. It may come with a slightly higher price tag compared to competitors such as the Kia Forte and Toyota Corolla, but the Civic justifies this cost with superior performance, commendable fuel efficiency, and an upscale interior.
12. Tesla Model 3
Number of Mentions: 3
Average Rank: 9.3
Model 3 by Tesla Inc (NASDAQ:TSLA) is one of the least expensive yet most popular electric cars with a range of over 300 miles, a smooth driving experience, and a simple yet modern interior. Model 3 not only offers a zippy acceleration stemming through powerful batteries that generate 271-455 horsepower but also a highly sophisticated infotainment panel featuring cutting-edge technology. The car is one of the most in demand cars heading into 2024.
11. Honda Accord
Number of Mentions: 4
Average Rank: 8.8
The Honda Accord stands out as a preferred choice in the family sedan category. Its spacious interior, comfortable driving experience, and remarkable fuel efficiency, especially with the hybrid powertrain, distinguish the Accord from its competitors. As part of the 11th-generation model introduced last year, this year’s Accord features a significant update. A notable change for the upcoming 2024 Honda Accord is the incorporation of a hybrid powertrain as standard on four trims. For those who prefer a non-hybrid option, the base Accord trims come with a 192-hp turbocharged four-cylinder engine under the hood. It is one of the most in demand cars heading into 2024.
10. Toyota Tacoma
Number of Mentions: 4
Average Rank: 8.3
Toyota Tacoma is one of the best-selling trucks in its category, surpassing sales of its notable cousin lineups Tundra and 4Runner. It not only is a success story for Toyota Motor Corporation (OTC:TOYOF) but also stands for its reputation of off-roading and durability. It features a 3.5-liter V6 engine under the hood that generates 278 horsepower and 265 lb-ft torque.
9. Nissan Rogue
Number of Mentions: 4
Average Rank: 7.3
Nissan Rogue is one of the most popular vehicles of Nissan Motor Co Ltd (OTC:NSANY) and one of the most stylish crossovers in the market. It is one of the most in demand cars heading into 2024. It outperforms its rivals with a spacious interior, reasonable fuel average, and well-equipped technology features. Nissan Rogue features an inter-cooled turbo regular 1.5-litre engine under the hood that generates 201 horsepower. Furthermore, Rogue’s 8 trims offer a variety of features including a four-wheel and all-wheel drive choice for the buyers.
8. Toyota RAV4
Number of Mentions: 4
Average Rank: 6.8
Featuring in the top 10 of our list of most in-demand cars heading into 2024, Toyota RAV4 is a sales success story for Toyota Motor Corporation (OTC:TOYOF). This SUV exemplifies a delightful driving experience with smooth rides, a spacious and user-friendly interior, and abundant utility. RAV4’s confident braking and handling contribute to a satisfying driving experience, coupled with an impressive fuel average.
7. GMC Sierra
Number of Mentions: 4
Average Rank: 5.8
General Motors Company’s (NYSE:GM) Sierra, part of the fourth Sierra 2500HD generation introduced in 2020, is a formidable heavy-duty truck in the company’s lineup. With a hood that generates 470 horsepower and 975 lb-ft of torque, it confidently rivals its competitors. The 2024 model Sierra features fresh styling, and powertrain upgrades increasing its capacity. Sierra is also set to debut two newly introduced trims, the Denali Ultimate and AT4X. It is one of the most in demand cars heading into 2024.
6. Honda CR-V
Number of Mentions: 4
Average Rank: 5.8
Redesigned last year by Honda Motor Company Ltd (NYSE:HMC), CR-V stands in close competition for the benchmark small family SUV. It features a smooth driving experience, spacious cargo space, and high-tech driving aid features with a new infotainment interface. Under the hood, CR-V holds an intercooled turbo regular 1.5-litre engine that generates approximately 190 horsepower. The 2024 model is expected to have a new Sport-L as the 7th addition to the trim line-up.
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Disclosure: None. 25 Most In Demand Cars Heading into 2024 is originally published on Insider Monkey.